Connect with us

Business

Virginia cannabis firms expand medical facilities amid uncertainty over adult-use sales

Published

on

Cannabis multistate operators in Virginia are focused on building out their medical marijuana facilities while they wait to see whether the commonwealth’s adult-use program actually launches in 2024 as planned, now that Republicans control much of the state government.

Virginia lawmakers last year approved legislation legalizing what would be the first commercial recreational marijuana market in the South. Democrats were then in control of state government.

But a 2024 launch is far from certain, sources told MJBizDaily, after Republicans retook the state House of Delegates and the governor’s mansion last November, throwing the upcoming recreational market – and its structure – into doubt.

In the meantime, representatives from Florida-based Jushi Holdings and New York-headquartered Columbia Care – which have MMJ licenses in Virginia – say they’re focused on opening their six total dispensaries allowed under state law.

They also are building out related infrastructure such as grow rooms and manufacturing facilities.

“We are feverishly working on building out our full complements of grow rooms,” said Trent Woloveck, chief commercial director at Jushi, who added that the company recently opened its third store in July, in Alexandria.

Jushi also has dispensaries operating in Manassas and Sterling, and all three are in the Washington DC metro area.

“We’ll have our Fairfax store open before the end of the month,” Woloveck added. “We just started construction of our fifth store in Arlington, and we’re finalizing our sixth site in Woodbridge and building out that facility there.”

The reason for that focus is threefold:

  • The Virginia Legislature made major changes to the state medical marijuana program this year, including streamlining patient applications so consumers can buy products the same day they receive a doctor’s recommendation. That is expected to increase demand.
  • The medical program continues to ramp up, and there’s plenty of infrastructure to build before a recreational cannabis market begins.
  • The Legislature failed this year to reenact two bills needed to launch the adult-use marijuana market in January 2024. That means companies such as Jushi can count only on MMJ sales for the foreseeable future.

The changes for patient access are particularly notable.

Previously, patients had to wait up to six months to receive the necessary paperwork from the state Board of Pharmacy after obtaining a physician’s medical cannabis recommendation.

That requirement has been eliminated, which puts medical marijuana more on par with traditional prescriptions.

“With the expanded access for patients … we’re really focused on getting all of our satellite locations up and running so we can service as many as possible,” said Ngiste Abebe, vice president of public policy at Columbia Care.

Columbia Care is set to be acquired by Illinois-based Cresco Labs, but that deal hasn’t closed yet, and Cresco Labs directed questions about Virginia to Columbia Care.

So far, Columbia Care has four of its maximum six dispensaries in the state, according to the company website: In Portsmouth, Virginia Beach, Richmond and Short Pump.

The Virginia medical market, which launched in 2020, is projected to reach up to $25 million in sales this year and up to $95 million by 2026, according to the 2022 MJBiz Factbook.

In addition to Columbia Care and Jushi, the other licensed medical cannabis operators in Virginia include Green Leaf Medical, a Maryland-based multistate operator, and a Virginia company called Dharma Pharmaceuticals.

Recreational market launch questionable

Perhaps the biggest development in Virginia so far this year, however, is what didn’t happen – the requisite approval of two bills that would have cleared the way for the state’s recreational marijuana market.

The recreational market is projected to hit upward of $500 million in sales in 2024 if it launches as planned, according to the MJBiz Factbook, and could surpass $1 billion in sales in 2026.

The two bills – House Bill 430 and Senate Bill 391 – were shelved by Republican leaders in the House of Delegates, said JM Pedini, the executive director of Virginia NORML.

Pedini noted the Senate measure sailed through the Democrat-controlled upper chamber but didn’t move out of committee in the GOP-led House.

“There is not one single committee in the House of Delegates in which the chair of said committee would allow an adult-use retail bill to advance to the floor,” Pedini said.

As a result, Pedini doesn’t believe the recreational market will launch as planned in January 2024.

“With an originally projected date of Jan. 1, 2024, for adult-use retail sales, is that even possible given the Virginia Republican-controlled House of Delegates’ complete unwillingness to move forward with any adult-use legislation?” Pedini asked rhetorically.

“The answer to that is ‘No.’ … Unless or until House leadership decides to prioritize retail sales … there will be no path forward for adult-use retail.”

But Woloveck is more optimistic that economic and public-health issues will force the Virginia GOP and Gov. Glenn Youngkin to honor the original plan for a regulated adult-use market in 2024.

Youngkin’s office did not respond to a request for comment.

Woloveck believes the governor and the House Republicans want to take their time to ensure there aren’t any negative ramifications for public health from launching a recreational market.

He pointed to the ban on hemp-based delta-8 goods approved this past legislative session – alongside the MMJ program expansions – as part of that agenda.

Woloveck also said the Republicans are still deciding on a policy route for adult-use marijuana.

“The governor has continued to show good faith in wanting to learn … and get an adult-use program teed up and ready to go,” Woloveck said.

And, Woloveck implied, they might not have a choice.

“It makes sense that the Republicans are going to get something that would kick into effect 1/1/24, because come (that date), adult-use sales are allowed,” Woloveck said.

He added that his understanding of the legislation approved in 2021 that legalized adult-use marijuana and set the Jan. 1, 2024, start date for sales is that the launch isn’t flexible; it’s set in law.

The only question is whether Republican legislators and Youngkin will agree on a regulatory scheme to govern those sales.

“I think the Legislature and the governor are going to continue to push to make that happen, because they understand the need from a public safety perspective and a law and order perspective,” Woloveck said.

“So I feel very confident that there will be a commercial program in place on 1/1/24.”

He also noted that Youngkin made his first appointment to the state Cannabis Control Authority just this month: retired police chief John Keohane.

Columbia Care’s Abebe was more circumspect.

“I think it’s entirely possible that we see a bipartisan compromise. I also don’t think it’s necessarily a fait accompli” that recreational sales will begin on time in 2024, Abebe said.

“I would be really impressed if we’re able to get everything done in this next year and have adult-use sales start on Jan. 1, 2024, but I also think there’s a lot of work to get done to accomplish something like that.”

Either way, Abebe said, it appears that there won’t be any solid answers on the rec market question for a while yet.

“I think we’ll see more movement building through September. That said, it’s difficult no matter who’s in charge to make cannabis the No. 1 issue for everyone,” she said.

In the meantime

In the absence of a state-regulated market to serve consumer demand, Pedini said, the illicit market has begun to flourish, since adult-use possession and consumption – but not sales – were legalized last year.

Pedini added it throws a wrench into the works because many of those illegal businesses are selling cannabis goods of questionable quality, which could lead to a public health issue.

“Pop-ups are definitely a thing. They weren’t before, and they are now,” Pedini said.

“People see these things – these stores that call themselves dispensaries – and they go in and buy these completely unregulated products, and everyone knows unregulated products are a threat to consumer health.”

Source: https://mjbizdaily.com/virginia-cannabis-firms-expand-medical-facilities-amid-uncertainty-over-adult-use-sales/

Business

EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

Published

on

By

A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

Continue Reading

AI & Technology

Amazon Faces Potential Criminal Trial in Italy Over €1.2 Billion Tax Evasion Allegations

Published

on

By

Milan: U.S. tech giant Amazon is facing the prospect of a major legal showdown in Italy, after prosecutors in Milan formally requested a court to move forward with criminal proceedings over alleged tax evasion totaling approximately ₹12,500 crore (€1.2 billion).

The case targets Amazon’s European division along with four senior executives, marking one of the most significant tax-related investigations involving a global e-commerce platform in Europe.

Trial Push Despite Multi-Million Euro Settlement

The move comes even after Amazon reached a financial settlement with Italian tax authorities in December, agreeing to pay around ₹5,500 crore (€527 million), including interest, to resolve part of the dispute.

Typically, such settlements lead to the closure of criminal investigations. However, Milan prosecutors have opted to proceed, signaling a tougher stance on alleged corporate tax violations.

A preliminary hearing is expected in the coming months, where a judge will decide whether to formally indict the company and its executives or dismiss the case.

Allegations of VAT Evasion Through Marketplace Sellers

At the center of the investigation are claims that Amazon’s platform enabled non-European Union sellers to avoid paying value-added tax (VAT) on goods sold to Italian consumers between 2019 and 2021.

Prosecutors allege that the company’s marketplace structure allowed thousands of foreign vendors—many reportedly based in China—to operate without fully disclosing their identities or tax obligations. This, authorities argue, led to substantial VAT losses for the Italian government.

Under Italian law, online platforms facilitating sales can be held partially liable if third-party sellers fail to comply with tax requirements, a key point in the prosecution’s case.

Italian Government Named as Affected Party

In their filing, prosecutors identified Italy’s Economy Ministry as the injured party, citing significant financial damage resulting from the alleged tax evasion.

Legal experts say the outcome of the case could have wide-ranging implications across the European Union, where VAT systems are harmonized and similar compliance rules apply to digital marketplaces.

Multiple Investigations Add to Pressure

The VAT probe is just one of several legal challenges facing Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining additional tax-related issues covering more recent years.

Meanwhile, Milan authorities are pursuing separate investigations into alleged customs fraud linked to imports from China and whether Amazon maintained an undeclared “permanent establishment” in Italy—potentially exposing it to higher tax liabilities.

In a separate regulatory action, Italy’s data protection authority recently ordered an Amazon unit to stop using personal data from over 1,800 employees at a warehouse near Rome.

Amazon Denies Allegations

Amazon has consistently denied wrongdoing and indicated it will strongly contest the allegations in court if the case proceeds. The company has also warned that prolonged legal uncertainty could impact investor confidence and Italy’s appeal as a destination for international business.

Broader Impact on Europe’s Digital Economy

If the case moves to trial, it could become a landmark moment for the regulation of global e-commerce platforms in Europe. Governments across the region are increasingly scrutinizing how digital marketplaces handle tax compliance, especially in cross-border transactions.

With online retail continuing to expand, regulators are under mounting pressure to ensure that multinational platforms and third-party sellers adhere to the same tax rules as traditional businesses.

Continue Reading

Aviation

IndiGo Crisis Exposes Risks of Monopoly: What If Telecom or E-commerce Collapses Next?

Published

on

By

Airports across India witnessed scenes of distress and confusion as thousands of passengers were stranded due to IndiGo’s massive flight disruptions. Families with medical emergencies, funerals, and personal crises were left helpless as the airline cancelled hundreds of flights without adequate communication or support.

Passengers described desperate situations — a mother pleading for sanitary pads for her daughter, a woman unable to transport her husband’s coffin, and others stranded while trying to reach family funerals or hospitals. “It was like a lockdown at the airport,” one passenger said, describing the panic that unfolded as IndiGo’s mismanagement crippled operations nationwide.

Root Cause: IndiGo’s Market Monopoly

The turmoil, industry experts argue, stems from IndiGo’s monopolistic control over India’s domestic aviation market. The airline operates nearly 2,100 flights daily and holds around 60% market share — meaning every second plane flying within India belongs to IndiGo.

This dominance has given the company unparalleled influence. When IndiGo falters, the entire aviation system suffers. Passengers are left with few alternatives, as other airlines lack capacity to absorb stranded travellers. The result: skyrocketing ticket prices, chaos at terminals, and total dependence on a single private operator.

Aviation pioneer Captain G.R. Gopinath, founder of Air Deccan, criticised the government’s inaction, noting that on some routes, IndiGo’s economy fares surged to ₹1 lakh. He compared the situation to a hostage crisis, writing that the airline “held the system ransom” and forced regulators to defer new safety rules meant to protect pilots and passengers.

Government Intervention and Regulatory Weakness

The crisis erupted after IndiGo failed to comply with the Flight Duty Time Limitations (FDTL) — rules introduced by the DGCA in January 2024 requiring adequate rest for pilots. Despite having nearly two years to adapt, IndiGo blamed the rule for operational disruptions, citing a shortage of pilots.

Under mounting public pressure, the government stepped in, temporarily relaxing FDTL norms and capping airfare hikes. Officials claimed the move was to protect passengers, but analysts say it exposed the state’s vulnerability to corporate monopolies. “The government had no option but to yield,” said one aviation policy expert, pointing out that ignoring safety regulations for short-term relief could have long-term consequences.

The crisis also rekindled memories of the June 2025 Air India crash near London, which claimed over 240 lives. Experts warn that compromising pilot rest and safety standards to maintain flight schedules could risk another tragedy.

If Telecom Giants Fail: A National Paralysis

The article raises a troubling question — what if a similar crisis struck the telecom sector, where Jio and Airtel together control nearly 80% of subscribers and serve over 780 million users?

If both networks failed simultaneously, the repercussions would be catastrophic. Internet shutdowns would halt UPI transactions, online banking, OTP verifications, video calls, OTT streaming, and emergency communications. Critical services such as airports, hospitals, stock exchanges, and small businesses — many of which rely on WhatsApp and digital payments — would come to a standstill.

In essence, a telecom breakdown could paralyse India’s digital economy, exposing the nation’s dependence on a duopoly.

E-commerce Monopoly: Another Fragile Ecosystem

The same risk looms over the e-commerce sector, where Amazon and Flipkart dominate nearly 80% of the market. A disruption similar to IndiGo’s could cripple daily life — halting delivery of groceries, medicines, and essential goods, freezing refunds and customer support, and leaving small sellers without platforms to trade.

Local retailers, freed from competition, might exploit shortages by inflating prices. Such a scenario underscores the perils of market centralisation in sectors critical to everyday living.

A Wake-Up Call for Regulators

The IndiGo crisis, analysts say, is a warning shot for policymakers and regulators. A single company’s operational failure exposed systemic weaknesses in India’s infrastructure and consumer protection mechanisms.

As the aviation regulator DGCA investigates and IndiGo works to restore normalcy, the broader lesson remains clear: unchecked monopoly power in any essential service — whether air travel, telecom, or e-commerce — poses a direct threat to economic stability and citizen welfare.

Without stronger competition laws, redundancy frameworks, and regulatory oversight, India risks repeating this crisis across multiple sectors — each time with millions of citizens paying the price.

Continue Reading

Trending

Copyright © 2022 420 Reports Marijuana News & Information Website | Reefer News | Cannabis News